CONCORD, Mass., June 28, 2019 (GLOBE NEWSWIRE) -- Technical Communications Corporation (TCCO) today announced that on June 25, 2019, the company received notice from the Nasdaq Listing Qualifications department of the Nasdaq Stock Market (“Nasdaq”) that because the company failed to maintain a minimum of $2,500,000 in stockholders’ equity, and since the company does not meet the alternatives of market value of listed securities or net income from continuing operations, the company no longer complies with Listing Rule 5550(b) for continued listing. Pursuant to such notice, the company will have until July 8, 2019 to submit a plan to Nasdaq to regain compliance; if the plan is accepted, Nasdaq can grant an exception of up to 180 days from the date of the notice to regain compliance.
As a result of the recent restatement of the financial statements of the Company, TCC has been out of compliance with the stockholders’ equity requirement since March 31, 2018 and has remained out of compliance since such time. The company is currently working on alternatives to raise equity, and will provide information to Nasdaq in its plan to regain compliance as to the expected timing of such events, although at this time the company does not have an estimate as to when that may occur.
Also on June 25, 2019, TCC received notice from Nasdaq that based on the filing of its delinquent annual and quarterly reports on June 24, 2019, the company had regained compliance with Nasdaq Listing Rule 5250(c)(1) requiring the company to timely file all required periodic reports with the U.S. Securities and Exchange Commission. The Nasdaq Staff has determined that the company now complies with such rule.
About Technical Communications Corporation
For over 50 years, TCC has specialized in superior-grade secure communications systems and customized solutions, supporting our CipherONE® best-in-class criteria, to protect highly sensitive voice, data and video transmitted over a wide range of networks. Government entities, military agencies and corporate enterprises in 115 countries have selected TCC's proven security to protect their communications. Learn more: www.tccsecure.com.
Statements made in this press release or as may otherwise be incorporated by reference herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to statements regarding anticipated operating results, future earnings, and the ability to achieve growth and profitability. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including but not limited to the effect of foreign political unrest; domestic and foreign government policies and economic conditions; future changes in export laws or regulations; changes in technology; the ability to hire, retain and motivate technical, management and sales personnel; the risks associated with the technical feasibility and market acceptance of new products; changes in telecommunications protocols; the effects of changing costs, exchange rates and interest rates; and the Company's ability to secure adequate capital resources. Such risks, uncertainties and other factors could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of the risks facing the Company, see the Company’s filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for the quarters ended December 29, 2018 and March 30, 2019 and its Annual Report on Form 10-K for the fiscal year ended September 29, 2018 filed with the Commission and the “Risk Factors” section included therein (as the same may be amended from time to time).
Technical Communications Corporation
100 Domino Drive
Concord, MA 01742 – 2892
Michael P. Malone
Chief Financial Officer